FAIRFIELD CONNECTICUT BUILDING EXPERT
DIRECTORY AND CAPABILITIES

Did You Really Accept That Bid? – How Contractors Can Avoid Post-Acceptance Bid Disputes Over Contract Terms

July 28, 2016 — David A. Harris & Steven M. Cvitanovic – Haight Brown & Bonesteel LLP
When California general contractors submit bids to an owner, can they force their subcontractors to honor their bids? Can they recover damages if the subcontractor later refuses to do so? While the general rule in California is that a general contractor who reasonably relies on a subcontractor’s bid may recover damages when the subcontractor reneges, the Court of Appeal for the Second Appellate District recently held that there is a substantial and important exception to the general rule. In Flintco Pacific, Inc. v. TEC Management Consultants, Inc. (LASC No. YC067984), the Court of Appeal held that where a general contractor requires a subcontractor to enter into a “standard-form subcontract” which materially differs from the subcontractor’s bid, the general contractor has rejected the subcontractor’s bid and has instead issued a counteroffer. The subcontractor is thereafter free to walk, or accept the new terms. If the subcontractor walks, the general contractor may not seek to enforce the terms of the subcontract or seek reliance damages. Reprinted courtesy of David A. Harris, Haight Brown & Bonesteel LLP and Steven M. Cvitanovic, Haight Brown & Bonesteel LLP Mr. Harris may be contacted at dharris@hbblaw.com Mr. Cvitanovic may be contacted at scvitanovic@hbblaw.com Read the court decision
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Florida Supreme Court Decision Limits Special Damages Presented to Juries

July 18, 2022 — John A. Rine & Shannon Murphy - Lewis Brisbois
Tampa, Fla. (June 16, 2022) - Verdicts in personal injury cases are greatly impacted by the amount of medical expenses a plaintiff can present to juries. In Florida, collateral sources of compensation, such as insurance payments, are generally not disclosed to juries. However, caselaw also typically does not allow plaintiffs to recover the gross amount of medical bills, but instead the amount after insurance adjustments. For decades, Florida courts have considered whether the bills are reduced by the adjustments before or after verdict. The recent Florida Supreme Court decision in Dial v. Calusa Palms Master Association, Inc., No. SC21-43 (Fla. Apr. 28, 2022), has standardized the way past medical expenses are presented to juries where the plaintiff was treated under Medicare. As is commonly understood, the original amount billed by medical providers is far different than the amount actually paid. Most treatment is subject to some private or government insurance and those insurers typically have negotiated rates for treatment. Thus, the bills are reduced subject to insurance contractual adjustments and the resulting net bills are far lower. For decades, defense attorneys have argued that juries should hear only the lower net amount. Read the court decision
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Reprinted courtesy of John Rine, Lewis Brisbois
Mr. Rine may be contacted at John.Rine@lewisbrisbois.com

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Drafting a Contractual Arbitration Provision

February 11, 2019 — David Adelstein - Florida Construction Legal Updates
A recent Florida case discussing a contractual arbitration provision in a homebuilder’s contract discussed the difference between a narrow arbitration provision and a broad arbitration provision. See Vancore Construction, Inc. v. Osborn, 43 Fla.L.Weekly D2769b (Fla. 5th DCA 2018). Understanding the distinction between the two types of arbitration provisions is important, particularly if you are drafting and/or negotiating a contractual arbitration provision. A narrow contractual arbitration provision includes the verbiage “arises out of” the contract such that disputes arising out of the contract are subject to arbitration. Arbitration is required for those claims the have a direct relationship with the contract. Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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Official Tried to Influence Judge against Shortchanged Subcontractor

February 10, 2012 — CDJ STAFF

A contractor testified in the trial of former Cuyahoga County Commissioner Jimmy Dimora. According to Fox 8 in Cleveland, Ohio, Sean Newman, the president of Letter Perfect testified that his company was a subcontractor on the reconstruction of the locker rooms at the Cleveland Browns Stadium. Newman said his company was paid only $400,000 of their $650,000 bid. When Letter Perfect sued the contractor, D.A.S. Construction, Dimora called the judge to influence her to rule in favor of D.A.S.



The judge in the earlier case, Bridgett McCafferty, has been found guilty of lying to the FBI during their investigation and is serving a 14-month prison sentence.

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New York’s Second Department Holds That Carrier Must Pay Judgment Obtained by Plaintiff as Carrier Did Not Meet Burden to Prove Willful Non-Cooperation

November 23, 2020 — Craig Rokuson - Traub Lieberman
In the recent case of DeLuca v. RLI Insurance Company, 2020 WL 5931054 (October 7, 2020), the Supreme Court, Appellate Division, Second Department held that RLI had a duty to pay a judgment obtained by an underlying plaintiff against RLI’s insured, MLSC. The underlying plaintiff brought the action directly against the carrier after obtaining a judgment against MLSC, and when the judgment remained unsatisfied, serving RLI with the judgment. As an initial matter, the court found that the direct action by the plaintiff was proper under New York Insurance Law 3420(a), which allows for an injured plaintiff to maintain a direct action against a carrier if a judgment against that carrier’s insured remains unsatisfied for a period of 30 days and the carrier is served with that judgment. In that event, the plaintiff steps into the shoes of the insured and is entitled to the rights of the insured (and is also subject to the carrier’s coverage defenses). Reprinted courtesy of Craig Rokuson, Traub Lieberman Mr. Rokuson may be contacted at crokuson@tlsslaw.com Read the full story... Read the court decision
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Merger to Create Massive Los Angeles Construction Firm

July 16, 2014 — Beverley BevenFlorez-CDJ STAFF
AECOM Technology Corp., a Los Angeles engineering and construction firm, has agreed to pay $4 billion to acquire URS Corp., their San Francisco competitor. According to the Sacramento Bee, “The combined company will employ about 95,000 people in 150 countries.” AECOM is currently building the World Trade Center in New York, and previous projects include the Los Angeles Police Department headquarters, and renovations to the Port of Los Angeles and the Bradley international terminal at the Los Angeles International Airport, the Sacramento Bee reported. Furthermore, “URS has worked on the Garden Grove (22) Freeway reconstruction, the UCLA Ronald Reagan Medical Center, the Port of Long Beach, the Gold Line Eastside Extension in Los Angeles and the Disneyland resort expansion.” Read the court decision
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The Court-Side Seat: FERC Reviews, Panda Power Plaints and Sovereign Immunity

April 26, 2021 — Anthony B. Cavender - Gravel2Gavel
This is a brief report on new environmental law decisions, regulations and legislation. THE U.S. SUPREME COURT Massachusetts Lobsterman’s Association v. Raimondo, Secretary of Commerce On March 22, 2021, the Supreme Court rejected a petition to review a Presidential decision to invoke the Antiquities Act of 1906 to designate as a monument “an area of submerged land about the size of Connecticut” in the Atlantic Ocean. This action forbids all sorts of economic activity, which compelled the filing of litigation in the First Circuit challenging this designation. Chief Justice Roberts supported the Court’s denial of certiorari, but remarked that a stronger legal case may persuade the Court to review such liberal uses of the Antiquities Act. Read the court decision
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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

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This Company Wants to Cut Emissions to Zero in the Dirty Cement Business

November 12, 2019 — Nick Rigillo - Bloomberg
Europe’s biggest maker of cement plants is looking for help to clean up one of the world’s dirtiest industries. FLSmidth A/S, which is based in climate-friendly Denmark, wants to reduce emissions in cement production to zero by 2030. The company says it can achieve 70% of that target by leveraging existing technologies, for instance by blending clinker with alternative materials. Read the court decision
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Reprinted courtesy of Nick Rigillo, Bloomberg

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